Twelve Georgian Commercial Banks Join Credit-Guarantee Scheme
Twelve Georgian commercial banks have joined the credit-guarantee scheme with the aim to simplify access to financial resources for small and medium business companies and ensure inclusive economy growth.
“The credit-guarantee mechanism ensures an eradication of those market breakdowns that hinder healthy business companies to take credits. Namely, the credit-guarantee scheme ensures a funding of such small and medium companies that lack for enough resources for taking new credits”.
The banking sector and Enterprise Georgia agency of Ministry of Economy have already signed a due contract agreement.
The credit-guarantee scheme will be enforced by this Agency.
“The scheme ensures about 70% co-participation in the guarantee that small and medium business companies have to submit to commercial banks. This preference will essentially simplify access to financial resources for small and medium enterprises. The 2019 state budget has allocated 20 million GEL for this scheme, which complies with the best principles and characteristics of the world”.